A good way to explain what home contents insurance covers is to imagine turning your home upside down – everything that falls out is contents, everything that remains in place would fall under buildings insurance.
Young people are a prime target for burglars. Accommodation is often located in cheaper, poorer area of town with young people tending to congregate close to each other making it ideal for thieves. Compile this with the fact that student accommodation is often empty for long periods of time (non-term time) and it’s not hard to see why burglars are attracted.
Info About Home Contents Insurance
Three types of cover are available:
New for Old
They will pay for the original cost of the goods, except clothes.
Indemnity Cover
You will be protected for the current value of your possessions.
Add-On Cover
All risks including property which is taken out of your home – i.e. wallets, iPods, laptops etc – are covered and protected. Legal cover in terms of court costs can also be included as an add-on.
The cost of your insurance policy is affected by where you live as a student:
- If you are living at home, you will be covered by your parent’s home contents insurance.
- If you are living in halls, the price of your rent may include a policy covering your possessions.
- If you are living in a flat you won’t be covered.
- Double check your parents' policy you may still be covered by their insurance even if you have moved out.
The insurance company is unlikely to pay the full out amount for stolen items. Most policies come with an 'excess' - you have to pay a certain amount first, and the insurers will pay the remainder. Some companies also have a maximum limit of how much they will pay per item.
You have to value your items accurately:
- Value them too low and insurers will not meet your claims and only pay a percentage of the true value.
- Value them too high and your insurance premium will be higher than it should be.
more
top^
Ways to Reduce your Premium
- Reduce the risk which insurers believe you to have:
- No claims history, any special precautions you undertake (locks and security) and even lifestyle choices can positively affect the cost of your policy.
- Be aware of monthly repayment plans:
- They cost more than paying in one lump sum. If you can’t afford to pay upfront, charge the insurance to a 0% purchase credit card. Insurers charge an extremely high rate of interest.
- Shop around and use as many comparison websites as possible to ensure you are getting the best coverage possible. Try:
- Not all deals are included in comparison site searches:
- Norwich Union and Churchill consistently have price promise offers where they aim to undercut renewal quotes from competitors. Tesco currently has half price insurance for customers.
- Haggle with your provider for the best deal:
- Their offers, just like those from a phone company, are not set in stone. Use your powers of persuasion to lower your premium.
- Take advantage of insurance companies which feature on cash-back websites to reduce the cost further.
Remember that it is only new customers who will receive the substantial saving, in your second year the premium may rise.
more
top^
